Finished Vehicles Logistics Market size is set to grow by USD 20.6 billion from 2024-2028, growing automotive industry boost the market, Technavio

NEW YORK, June 18, 2024 /PRNewswire/ -- The global finished vehicles logistics market size is estimated to grow by USD 20.6 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 4.2%  during the forecast period. Growing automotive industry is driving market growth, with a trend towards increased sales of electric vehicles. However, shortage of truck drivers  poses a challenge. Key market players include ACERTUS, AP Moller Maersk AS, ARS Altmann AG, BERGE INFRAESTRUCTURAS Y SERVICIOS LOGISTICOS SL, CargoTel Inc., CMA CGM SA Group, Deutsche Post AG, DP World, DSV AS, Ekol Lojistik AS, Hellmann Worldwide Logistics SE and Co KG, Jack Cooper Investments Inc., Koopman Logistics Group BV, Kuehne Nagel Management AG, NFI Industries Inc., Nippon Express Holdings Inc., Omsan Lojistik AS, Ryder System Inc., Schnellecke Group AG and Co. KG, SNCF Group., United Parcel Service Inc., and XPO Inc..

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Market Driver

The global shift towards electric vehicles (EVs) is driving growth in the finished vehicles logistics market. With increasing sales of EVs, particularly light-duty vehicles, buses, and smaller vehicles, there is a rising demand for efficient logistics solutions. Major automakers are investing heavily in transportation electrification, committing over USD140 billion in 2022. Consumers are drawn to EVs for their cost-effectiveness and reduced environmental impact, leading to increased production and export. This trend is expected to continue, necessitating advanced logistics capabilities to meet demand during the forecast period. 

The Finished Vehicles Logistics Market is experiencing significant trends with the increasing demand for efficient and cost-effective transportation solutions. Technologies like tracking and traceability systems are gaining popularity to ensure timely delivery and reduce the risk of vehicle damage. Blockchain technology is also being explored for secure and transparent transactions. The use of alternative fuels and electric vehicles is increasing, leading to the need for specialized logistics solutions. Additionally, there is a growing focus on sustainability and reducing carbon footprint in the industry. The market is expected to continue growing with these trends shaping the future of finished vehicles logistics. 

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Market Challenges

•         The global finished vehicles logistics market faces a significant challenge due to the shortage of truck drivers. This issue is primarily caused by low remunerations in many urban and semi-urban markets, leading to an aging workforce and a limited number of new entrants. The American Trucking Association reported a record shortage of 80,000 drivers in 2021, with potential growth to 160,000 by 2030. Walmart addressed this issue by offering first-year salaries of USD110,000 to its private fleet drivers. The lack of adequate pay and long working hours negatively impact drivers' health and productivity, leading to potential accidents and delays in order fulfillment. These factors can ultimately restrict the growth of the finished vehicles logistics market.

•         The Finished Vehicles Logistics Market faces several challenges in the transportation of vehicles from manufacturers to dealers and customers. These challenges include the need for secure and efficient handling of vehicles, timely delivery, and compliance with regulations such as customs and documentation requirements. Additionally, the increasing use of technology in logistics, such as real-time tracking and automation, presents both opportunities and challenges for market players. The complex nature of international trade, including different regulations and taxes in various countries, adds to the complexity of the market. Effective management of these challenges is crucial for companies to remain competitive in the Finished Vehicles Logistics Market.

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Segment Overview 

This finished vehicles logistics market report extensively covers market segmentation by  

1. Type 
• 1.1 Road
• 1.2 Rail
• 1.3 Sea
• 1.4 Air
2. Service 
• 2.1 Warehousing
• 2.2 Transport
3. Geography 
• 3.1 APAC
• 3.2 North America
• 3.3 Europe
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Road-  The Finished Vehicles Logistics Market involves the transportation and storage of completed vehicles from manufacturers to dealerships and end customers. This market is driven by factors such as increasing vehicle production and sales, globalization, and the growing preference for just-in-time delivery. Logistics providers offer services including ocean and air freight, inland transportation, and warehousing to facilitate the efficient movement of finished vehicles. Effective logistics solutions help reduce transportation costs, improve delivery times, and ensure vehicle quality and safety.

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Research Analysis

The Finished Vehicles Logistics Market in the auto industry plays a crucial role in the transportation and delivery of manufactured cars from manufacturing facilities to dealer showrooms. This process involves various logistics solutions, including GPS tracking and free trade agreements, which facilitate the smooth movement of vehicles across economies. The implementation of advanced technologies such as distributed control systems, programmable logic controllers, I/O modules, and industrial networking in manufacturing facilities enhances the efficiency and sustainability of car production. Additionally, the integration of data interchange and robots in the logistics process ensures transparency and reduces the carbon footprint. The electrical industry also contributes significantly to the logistics of finished vehicles through the development of Power grid projects. The use of alternative fuel vehicles and the adoption of blockchain technology further enhance the efficiency and sustainability of the Finished Vehicles Logistics Market.

The Finished Vehicles Logistics Market encompasses the transportation and storage of new and used vehicles from manufacturing sites to dealerships and customers. This market is driven by the increasing production of vehicles and the growing demand for efficient and reliable logistics solutions. The market is segmented based on vehicle type, logistics services, and regions. Vehicle types include passenger cars and commercial vehicles, while logistics services include inland transportation, ocean freight, air freight, and value-added services. The market is expected to grow due to factors such as increasing globalization, rising demand for just-in-time delivery, and the increasing adoption of technology in logistics operations. The market faces challenges such as fluctuating fuel prices, increasing competition, and regulatory compliance. The market is expected to continue its growth trajectory in the coming years.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• Road
• Rail
• Sea
• Air
• Service
• Warehousing
• Transport
• Geography
• APAC
• North America
• Europe
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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